News

Timely, comprehensive, professional and accurate information and data to understand the latest information about blockchain, cryptocurrency and Bitcoin

Key Drivers Behind Solana's (SOL) Price Surge Today

2024-09-13 16:41:10

The SOL price has gained from the decline in US inflation, an increase in network TVL, and potentially the excitement surrounding the upcoming Solana Breakpoint conference.


Source: cryptonews.com.au


On September 11, Solana's price fell to $128.40 but swiftly rebounded within 24 hours, trading close to $135. This fluctuation mirrored the overall volatility in the cryptocurrency market, which was influenced by the latest US inflation data. Additionally, certain developments within the Solana network and its ecosystem played a role in the price surge of SOL on September 12.


Reduced US Inflation And Increased Activity On Solana DEXs

On September 11, the market initially overreacted to a reported 3.2% increase in consumer prices, excluding food and energy, leading analysts to revise their forecasts for a 0.50% interest rate cut by the US Federal Reserve. However, investor sentiment shifted as it became apparent that heightened consumer demand could positively impact third-quarter corporate earnings.


The release of US producer price data on September 12 eased some inflation concerns. An annual increase of 1.7% in wholesale prices for August aligned with the Federal Reserve's 2% inflation target, reducing fears of persistently high inflation and lessening risks for companies dependent on consumer spending.


In addition to these macroeconomic factors, SOL has benefitted from increased activity within its ecosystem. This includes the launch of new decentralized applications DApps, the anticipation of token airdrops, improvements in liquid staking and restaking incentives, and the trading of SPL tokens, including memecoins. Trading volumes on decentralized exchanges DEXs have risen by 7% since September 5 according to data.


The total value locked (TVL) in the Solana network has also risen by 11% over the past month, now totaling 36 million SOL. Significant developments include Jupiter, a leading DEX, and Drift, which offers on-chain perpetual futures with cross-margin features. However, apart from the prominent DEX Raydium, there has been a noticeable decline in active addresses across most Solana DApps.


Will The Solana Breakpoint Conference And Token Launches Affect SOL Price?

The recent bullish trend in Solana's SPL tokens has reignited enthusiasm among SOL investors, especially with the anticipation of upcoming airdrops and new project announcements. Notable performers since September 6 include Pyth Network PYTH +13%, Render RNDR +12%, Book of Meme BOME +10%, and The Graph GRT +9%.


Tom Wan, an on-chain data analyst and business developer at 21Shares, pointed out that Solana now hosts more than double the number of liquid staking tokens compared to Ethereum, with over 60 tokens available. He explained that these tokens are mainly used as collateral in DeFi protocols, which likely boosts the adoption and trading volumes of perpetual futures.


Disclaimer: FameEX makes no representations on the accuracy or suitability of any official statements made by the exchange regarding the data in this area or any related financial advice.

Copyright © 2022-2023 FAMEEX.COM All Rights Reserved
FameEX APPMobile trading, anytime, anywhere